15 % NAC Levy on Used Vehicles: ANLCA May Protest to National Assembly

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Dr Kayode Farinto, ANLCA Acting President

By Shola Fadeyi

Strong indications have emerged that the Association of Nigerian Licensed Customs Agents (ANLCA)  may take recourse in  the National Assembly over the 15 per cent National Automotive Council  Levy (NAC) , imposed on used vehicles, by the Federal Government.

This will however happen, only if its ongoing discussion with the Federal Ministry of Finance , Budget and National Planning does not meet  its aspiration to  have the level cancelled.

The ANLCA executive had entered into deliberations with the Finance, Budget   and National  Planning Ministry  when it discovered that the imposition of the levy  was not  by  the Nigerian Customs Service( NCS) , but rather   its supervisory ministry.

The ANLCA Acting President, Dr Kayode  Farinto   in a chat with the Marine and Economy Online on Phone , yesterday gave the  indication that the Association may protest to the National Assembly,  if  its negotiation with the Ministry was not fruitful.

He also said that ANLCA as an association did not have any arrangement to embark on strike to protest the imposition of the 15 per cent NAC Levy.

According to him strike still remains the last instrument for any Union or association to achieve its purpose , but that ANLCA executive believes in round table   discussion to resolve any issue , including the NAC Levy matter.

Dr. Farinto stated that the earlier speculated strike action did not emanate from ANLCA but rather from the quarters of people , whom he said  were not the association’s  members and who do not possess legal customs agents clearing license.

It will be recalled that a youth   group  purported to be operating at the Tin Can chapter of ANLCA had planned a warning strike from Monday,April 25, 2022 , but shifted it again ,  to protest  the imposition of the 15 per cent  NAC Levy on used vehicles as well as illegal benchmark  on PAAR on  the ground that that it was illegal and that the levy will further add to the high  cost of clearing used vehicles.

Experts have said the 15 per cent NAC levy  stipulated by the Customs for import duty and levy collection on cars , violates the  Finance Act 2020 and 2021 passed by the National Assembly, which only provides  for 5% levy for Motor vehicles .

 

It will be recalled that the Customs in its  migration    from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026), effective , April 1, 2022,  imposed 15 per cent  NAC levy on used vehicles , attributing it, to the directive of the Federal Ministry of Finance .